After the office-sharing company sidelined co-founder Adam Neumann to resolve governance and leadership issues, the next question is a more traditional one for prospective IPO investors: Does its business model make sense? It all depends on execution.
"A fixed lease for coworking operators is a bit of a double edged sword: it's great for operators in up markets, but pretty painful in down markets, whereas management agreements reduces some of the inherent volatility in a fixed-obligation structure," said Danny Ismail, an analyst at Green Street Advisors."By having these alternative structures compared to a traditional lease, it does reduce capital expenditures and makes it more asset-light.
"We don't sign leases, we sign management agreements with landlords and partner with them," Mr Hodari said."If we spend any capital, it's capital to build out new spaces, but there's no operating losses or burn rate to cover."Investors across markets like Manhattan, London, San Francisco are among the most exposed to WeWork. Deals for two big London office buildings leased mostly to WeWork are on the ropes.
"It's been a disruptive business model for the industry; we want to understand it, and we want to participate in it," Mr Fortier said.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WeWork CEO Adam Neuman steps down after investor revoltNEW YORK (REUTERS) - WeWork co-founder Adam Neumann agreed on Tuesday (Sept 24) to resign as chief executive and give up majority voting control, after SoftBank Group Corp and other shareholders turned on him over a plunge in the US office-sharing start-up's estimated valuation.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »
WeWork CEO Adam Neumann steps down after investor revoltNEW YORK (REUTERS) - WeWork co-founder Adam Neumann agreed on Tuesday (Sept 24) to resign as chief executive and give up majority voting control, after SoftBank Group Corp and other shareholders turned on him over a plunge in the US office-sharing start-up's estimated valuation.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »
WeWork chief Neumann's top lieutenants step up as successorsAs WeWork parent We Company's CEO Adam Neumann asked Artie Minson and Sebastian Gunningham to separately take care of the U.S. office-sharing ... If you were watching a fantasy epic about an evil, spoiled prince who made a deal with a witch to have his uncle killed, that character would look like Neumann.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
WeWork to put up three businesses for sale - The InformationWeWork owner The We Company will try to sell three companies it had acquired in the last few years, The Information reported on Wednesday, citing ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
WeWork to put up three businesses for sale: The InformationWeWork owner The We Company will try to sell three companies it had acquired in the last few years, The Information reported on Wednesday, citing ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
SoftBank in talks to boost WeWork investment by $1.38b or more, says FTLONDON (REUTERS) - SoftBank Group Corp is planning to invest an additional US$1 billion (S$1.38 billion) or more in WeWork, altering a warrant agreement struck before WeWork postponed its IPO plans, the Financial Times reported, citing people briefed on the matter.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »